KRAS would be India's first private sector advanced defence sub-systems manufacturing entity. Spread across an area of 24,000 square feet, the facility will enable production of high-end technology systems for Indian Armed Forces. It will be engaged in development of a wide range of advanced capabilities like Command Control and Guidance, Electro-Optics, Remote Weapon Systems, Precision Guided Munitions and System Engineering for System Integration. The facility will also target to export its products to other countries, according to the company.

The JV partners have invested close to Rs 70 crore in the facility and production is slated to start in a few weeks from now. KRAS is yet to have the confirmed orders from the Indian defence forces.

The company is expected to supply components for the Israeli anti-tank guided missiles called Spike Missiles, which will be integrated by Hyderabad-based public sector defence company Bharat Dynamics Limited (BDL) once the deal gets through. "The process of finalisation of vendors for the said missile has not yet started. Once the process is on, they too will participate along with other companies in India," an industry source said. Spike Missiles were designed and developed by the JV partner Rafael Advanced Defence Systems.

The Pune-based Baba Kalyani group holds 51 per cent stake in the joint venture and the rest is with Israeli defence and aerospace major. The launch of its operations adds to the already evolving ecosystem of high-end defence and aerospace manufacturing activities in Hyderabad, which also has very large base of defence and research establishments involving missile development among other things.

Three of the joint ventures formed by Tata Group with American and Israeli companies have already been producing helicopter cabins among other components for the Western aerospace companies. A latest collaboration between Tatas and Boeing company is also expected to set up its operations in the city soon.

Kalyani Strategic Systems Limited (KSSL) is the principal company within the Kalyani Group undertaking defence and aerospace initiatives. KSSL has emerged from being a traditional supplier of components and subsystems to Indian Defence to becoming a complete system and solutions provider.

Rafael is one of the world's leading missile design and manufacturing companies offering products and systems for Anti-Tank Guided Missiles (ATGM), Surface to Air Missiles (SAM), Precision Weapons among other systems which are in service with several defence forces all over the world.

According to Kalyani group chairman Baba N Kalyani, this technology-based partnership was aimed at developing advanced defence systems and remote weapon system capabilities within India. " We are committed to the government’s vision of ‘Make in India’ and this joint venture manufacturing facility is a step in this direction,"he said.